Money gift as POF

[LiNa2010]

Hi all,

I have a question regarding the proof of funds for my application. Is it possible for the money to be a gift via a contract or something like that? The situation is that my mother has a smaller apartment that I would inherit some day but since she currently owns it she has to sell it and therefore the money will go to her bank account. So my problem is if we sign a gift contract, by which I receive that money from her, could that be considered a loan? (which is not acceptable as POF)
My husband would be a PR.

Has anybody had a similar situation? Any help would be great.

Thanks

 

[iloveYou!]

Hi all,

I have a question regarding the proof of funds for my application. Is it possible for the money to be a gift via a contract or something like that? The situation is that my mother has a smaller apartment that I would inherit some day but since she currently owns it she has to sell it and therefore the money will go to her bank account. So my problem is if we sign a gift contract, by which I receive that money from her, could that be considered a loan? (which is not acceptable as POF)
My husband would be a PR.

Has anybody had a similar situation? Any help would be great.

Thanks

thats fine. after you have deposited that money in your account, sent cic the proof that your mother sold the apartment and has given you that money as a gift. you don't need a specific contract called gift contract only the proofs that she sold the apartment and you got money from that thing

 

[Cappuccino]

thats fine. after you have deposited that money in your account, sent cic the proof that your mother sold the apartment and has given you that money as a gift. you don't need a specific contract called gift contract only the proofs that she sold the apartment and you got money from that thing

That's right you just need an affidavit stating that the money is a gift and, more specifically, does not need to be repaid once you settle in Canada.

However, you may need to investigate the tax implications of such a gift in your own country. For example, in the UK we can only get £3000 as a "gift" per year from a parent, and anything higher than that we have to pay tax on.

Wayne.

 

[LiNa2010]

Thanks for replying. So affidavit stating is enough for CIC. For how long should this money be on the account before applying?

 

[iloveYou!]

That's right you just need an affidavit stating that the money is a gift and, more specifically, does not need to be repaid once you settle in Canada.

However, you may need to investigate the tax implications of such a gift in your own country. For example, in the UK we can only get £3000 as a "gift" per year from a parent, and anything higher than that we have to pay tax on.

Wayne.

i don't think so an affidavit is really needed. i think simple written statement that you got the money from your mother along with proof of property sold is enough.

interesting question is cic is not aksing you where you got the money from? but if you include the proof then its better.

you don't need any speicific period to keep the money in account. get your statement once put in the account along with sale of property proof from your mother and send it.

 

[LiNa2010]

i don't think so an affidavit is really needed. i think simple written statement that you got the money from your mother along with proof of property sold is enough.

interesting question is cic is not aksing you where you got the money from? but if you include the proof then its better.

you don't need any speicific period to keep the money in account. get your statement once put in the account along with sale of property proof from your mother and send it.

I was afraid CIC would think that this is a borrowed money, since it is not allowed to borrow money. I just wanted to prove them that I don't need to refund that money, just to avoid any problems.

However, you may need to investigate the tax implications of such a gift in your own country. For example, in the UK we can only get £3000 as a "gift" per year from a parent, and anything higher than that we have to pay tax on.

Wayne.

We don't have limits for gifts from parent and it is tax free.

 

[Cappuccino]

I was afraid CIC would think that this is a borrowed money, since it is not allowed to borrow money. I just wanted to prove them that I don't need to refund that money, just to avoid any problems.

We don't have limits for gifts from parent and it is tax free.

Most visa offices like to see at least 3 months bank statements, but that doesn't mean the money has to have been there for all of those 3 months. They mainly want to see if any large deposits have been made.

As it stands you will be explaining the source of the large deposit, so there should be no problem.

A full sworn affidavit may not be necessary, as mentioned above. I would start with a signed letter from your parent stating that this is a gift and does not have to be repaid and go from there. If visa office require further documents they will ask for them.

Best of luck!
Wayne.

 

[iloveYou!]

I was afraid CIC would think that this is a borrowed money, since it is not allowed to borrow money. I just wanted to prove them that I don't need to refund that money, just to avoid any problems.

We don't have limits for gifts from parent and it is tax free.

good then either make an affidavit or write in a cover letter that you got from your mother along with property sale proof (Most important thing)

 

[iloveYou!]

Most visa offices like to see at least 3 months bank statements, but that doesn't mean the money has to have been there for all of those 3 months. They mainly want to see if any large deposits have been made.

As it stands you will be explaining the source of the large deposit, so there should be no problem.

A full sworn affidavit may not be necessary, as mentioned above. I would start with a signed letter from your parent stating that this is a gift and does not have to be repaid and go from there. If visa office require further documents they will ask for them.

Best of luck!
Wayne.

well explained wayne. agreed..

 

[coolguy2010]

Hi all,

I have a question regarding the proof of funds for my application. Is it possible for the money to be a gift via a contract or something like that? The situation is that my mother has a smaller apartment that I would inherit some day but since she currently owns it she has to sell it and therefore the money will go to her bank account. So my problem is if we sign a gift contract, by which I receive that money from her, could that be considered a loan? (which is not acceptable as POF)
My husband would be a PR.

Has anybody had a similar situation? Any help would be great.

Thanks

Dear Lina2010,

First of all, you need to check whether the property is treated as POF or not as per your Visa Office country.

If it is allowed, no need to sell the property. You need to have legal document for getting gift from your mother which should be proved well. This legal documents mean it is to be validated by Law.

If you are selling the property and then transferring the money, you will liable for Capital gain tax in your country. Here the gift will be funds (not property) which needs to be legalize.

Plan and then take the action.


Regards
Cool

 

[LiNa2010]

Thank you both for making this easier for me! I will do affidavit because an extra paper won't cost me a lot but it is safer.
Is it a problem if my husband is principal applicant and money is on my account (only my name will be mentioned in affidavit)?

 

[iloveYou!]

Thank you both for making this easier for me! I will do affidavit because an extra paper won't cost me a lot but it is safer.
Is it a problem if my husband is principal applicant and money is on my account (only my name will be mentioned in affidavit)?

would be ok no problems

 

[Cappuccino]

Thank you both for making this easier for me! I will do affidavit because an extra paper won't cost me a lot but it is safer.
Is it a problem if my husband is principal applicant and money is on my account (only my name will be mentioned in affidavit)?

Proof of funds can be in the name of the principal applicant OR an accompanying spouse, or both.

So it is fine for the money to be in your name, backed up by the letter/affidavit. Although a letter may suffice I think a sworn affidavit is wise if the cost is not too great, since it is a stronger statement and is more convincing.

Best of luck,
Wayne.

 

[LiNa2010]

Dear Lina2010,

First of all, you need to check whether the property is treated as POF or not as per your Visa Office country.

If it is allowed, no need to sell the property. You need to have legal document for getting gift from your mother which should be proved well. This legal documents mean it is to be validated by Law.

If you are selling the property and then transferring the money, you will liable for Capital gain tax in your country. Here the gift will be funds (not property) which needs to be legalize.

Plan and then take the action.


Regards
Cool

My Visa Office is Vienna. I was trying to get info about property as POF but I could get any. If someone knows I would appreciate for this information. In Croatia we are tax free on gifts from parents (all kinds of gifts, property, money....).

It would be great if we don't have to sell property immediately and show property as POF. Then my mother would give me property as gift and it is even easier for us.

 

[Cappuccino]

My Visa Office is Vienna. I was trying to get info about property as POF but I could get any. If someone knows I would appreciate for this information. In Croatia we are tax free on gifts from parents (all kinds of gifts, property, money....).

It would be great if we don't have to sell property immediately and show property as POF. Then my mother would give me property as gift and it is even easier for us.

Official CIC stance is that property CAN be used as proof of funds at the application stage. However, it seems some visa offices are more willing to accept this than others.

We didn't have immediate bank funds when we first applied so we sent 3 estate agent quotations and 1 mortgage letter to prove the equity we had in our home. We are using London visa office. But since applying we've been saving up money in a savings account and now have more than the minimum required even without selling our home first - so we sent bank statements to visa office as additional proof of funds.

We will hopefully "land" in August to seal the deal with our bank funds as POF, and then transfer the remainder of the house money over once the house is sold later in the year.

Regarding your own position - try to find out from people at the same visa office as you if they have succeeded in using property as POF. Or if applicants from Vienna are not forthcoming then maybe send a query to Vienna VO asking them if they accept property as POF?

Best of luck,
Wayne.